The following two (2) questions are based on the following semi-annual coupon payment bonds:

	Bond X	Bond Y
N (semi-annual)	10	12
Rd (semi-annual)	3.5%	3.5%
PMT (semi-annual)	35	35
PV	-1000	-1000
FV	1000	1000

1.

If interests rates rise 1.25% on an annual basis, what will be the change in value of price due to duration for Bond X? Include a negative (-) sign if the price change is a decline. For example, enter -123.45 for a $123.45 price drop.

[Hint: you need to calculate Macaulay and Modified duration first]

2.

If interests rates rise 1.25% on an annual basis, what will be the change in value of price due to duration for Bond Y? Include a negative (-) sign if the price change is a decline. For example, enter -123.45 for a $123.45 price drop.

[Hint: you need to calculate Macaulay and Modified duration first]